Finding the right dealership in Seattle can be tough when you have bad credit. While you should try to get pre-approved with your bank or credit union, you may find yourself getting turned down due to your credit. The good news is that all hope isn’t lost, as there are car dealers that finance just about anyone, no matter their credit score.
Buy Here Pay Here Car Dealerships in Seattle
While special finance dealerships that work with subprime lenders are the best route to go if you have poor credit, not everyone can qualify for a loan through them. Subprime lenders check your credit, so you're going to be turned down if you don't meet their credit requirements, or other basic qualifications.
So, where do you go from there if you need an auto loan in Seattle? A buy here pay here (BHPH) dealer, of course. BHPH dealerships, also known as tote the note dealers, offer second chance car loans to those struggling with credit.
What makes them different from a subprime lender is that the dealership is also the lender. Because they finance in-house and don't use third-party lenders, they typically don’t run credit checks. This means you could have no credit history and still get approved through one of these dealers.
Buy here pay here dealerships base approval on your income and down payment. As long as you have the income, you shouldn’t have any issues getting approved. Each dealer has different income and down payment requirements because they're independently operated.
In our experience, many dealerships ask for a minimum income of $1,500 to $2,000 a month before taxes, while the down payment amount required depends on the vehicle you choose.
Drawbacks of Buy Here Pay Here Dealers
These places can be a great choice for people who need a vehicle to get around the Seattle area and aren’t concerned with make and model. However, BHPH car lots only carry used vehicles, and selection is limited to what's on the lot.
Buyers need to be extra careful around used cars. Make sure you thoroughly check it out during a walk-around and test all doors, buttons, knobs, and switches. You should take a test drive and get a vehicle history report. It also won't hurt to have any car you're considering checked out by a certified mechanic.
Buy here pay here dealers may not report your loan or timely payments to the credit bureaus. If you want to improve your credit score with an auto loan, make sure to ask about their reporting practices before signing any paperwork.
Additionally, some BHPH dealerships require in-person payments, as their name suggests. This can be an inconvenience for those who don't live nearby, so you're going to want to inquire about what forms of payment they accept, too.
Finally, the interest rate you get is likely to be higher than average, which is going to raise the overall cost of the loan. According to Experian, the average interest rate at independent used car dealers was 12.06 percent in the fourth quarter of 2018.
Get Connected to a Dealership Today
At Auto Credit Express, we understand the financing challenges that come with bad credit. This is why we’ve teamed up with dealerships across Seattle, and the rest of the US, that have the lending resources available to help people like you.
The process is easy – all you have to do is complete our no-obligation auto loan request form, and we'll work to match you with a special finance dealer near you. Don’t get stuck driving in SODO or the University District searching for a dealership on your own, let us do the searching for you!